ABC FinanceCertified Check Vs Cashiers Check

Certified Check vs Cashier’s Check: Difference and Similarities

A cashier’s check and a certified check is a type of check that offers a guaranteed payment for a large transaction. Cashier’s checks and certified checks have a fundamental difference when it comes to their regulations, funding and how they work. Furthermore, the key benefits of each check are slightly different. To reduce the risk of non-payment; people often request a certified check or cashier’s check. Banks issue both certified checks and cashier’s checks when the customer directly go to the bank. Only banks that have a physical branch can only issue a certified check and cashier’s check. In addition, most banks only issue a certified check and cashier’s check if the customer is an account holder. 

There are key differences between a cashier’s check and a certified check. It might be confusing because both checks are used for large transactions. For convenience; it is better to request a cashier’s check because they allow the funds to be available the next business day, making them useful for time-sensitive transactions. A cashier’s check and a certified check may have a minimal fee depending on the bank. A cashier’s check roughly costs about £8.00 to £16.00 GBP, and a certified check may cost up to £12.00 GBP.  Most of the time, a certified check fee is waived by the bank.

Certified Check vs Cashier's Check: Difference and Similarities

What is a Certified Check?

A certified check is a type of check that is personally written by the account holder. It helps the payer and the receiver reduce the risk of non-payment. To reduce the risk of non-payment, the bank ensures that the account has enough cash to complete the transaction before issuing a certified check. They are similar to a regular personal check, but with extra security of payment. Furthermore, they can be an alternative for personal checks to a more secured transaction. Therefore, they provide an extra level of assurance and eliminates its risk. The bank will ensure that the check has the genuine signature of the account holder. In addition, a certified check is usually readily available in local banks. 

When should I use a Certified Check?

A certified check is used when purchasing expensive items or transacting a large payment. For example; buying a car, house, and other luxury items that costs a large amount. It is not necessary for everyday purchases because they require a verification process. The verification process is done by the bank before issuing a certified check and helps to reduce the risk of non-payment. In the case of the writer of the check not having sufficient funds in their account, certification will not be given. In addition, it protects the seller from a bounced check with the help of a certification process from the bank. A certified check is safer to carry than a large amount of cash. 

What is a Cashier’s Check?

A cashier’s check is a type of check that payors pay the bank. It is also known as the teller’s check or official bank check. To process a cashier’s check; the teller of the bank will personally create the check, addressing the payee. The money comes from the back when the check has been paid out. Most banks, only issue a cashier’s check to their clients who have a personal or business account with them. It offers more guarantees to the payee; because it is guaranteed that the check will be paid. 

When should I use a Cashier’s Check?

A cashier’s check can be used in major transactions. Such as, buying boats or real estate transactions. It is typically used for high-value transactions and payments. A cashier’s check offers readily available funds, and it is useful in time-sensitive transactions. In most cases, the funds are immediately available the next day. Generally, a cashier’s check can be used for anything over £900.00 GBP. To avoid the risk of a counterfeit check; it is suggested to request a cashier’s check for its security, and guarantees. A cashier’s check is helpful for any financial transaction in which the recipient would like to ensure that the money is truly in the bank.

How much does a certified check and cashier’s check cost?

The certified check is not expensive, usually costing up to £12.00 GBP. On the other hand, cashier’s checks typically range from about £8.00 to £16.00 GBP. Furthermore, most banks waive the fee for certain account holders. Especially, when customers have checking and savings accounts and meet certain balance requirements.

Which is safer to use between Certified Checks and Cashier’s Check?

A certified check and cashier’s check both offer a secure form of payment. However, a cashier’s check is the most regarded as the safest to use. Since the funds are from the bank directly, not from a person’s account or business account. It is an advantage for a cashier’s check that it has a unique watermark that makes it difficult to fake. A certified check has a different watermark compared to a cashier’s check. 

How to avoid Check Fraud?

Cashier’s checks and certified checks are vulnerable to fraud, like any other form of payment. The main responsibility of the recipient of the check is to make sure that the check is legitimate and not counterfeit. One of the reasons is that it is important to check transactions before committing . Banking security experts recommend verifying the check by calling the bank immediately upon receiving the check. In addition, check fraud can be easily visible through the check itself. For example; such as typographically errors and grammatical errors printed on the check. 

The list below is the 3 tips to avoid check fraud. 

  • Do not call the number printed on the check: To verify if the check is legitimate, the printed number on the check may be the scammer’s contact number. Instead, find the bank’s phone number online. During the call, customer service will ask for the check number and the name of the purchaser. 
  • Make sure that the issuing bank is real: Scammers may use the name of real banks, but sometimes they also make up a financial institution name for a fraudulent check. To verify if it is a real financial institution, search for it on the government’s bank find tool. 
  • Investigate the check itself: Legitimate checks have a security thread. Scammers may be able to copy these features, but in poor quality. 

What are the differences between Certified Checks and Cashier’s Check?

A certified check and a cashier’s check might be confusing when it comes to their use. Since both checks are used in paying a large transaction, instead of cash. It is more convenient to carry checks instead of a large amount of cash. A certified check and a cashier’s check offer security when it comes to transacting with a stranger. Due to its security from the bank, many people consider both checks as guaranteed payments. Furthermore, a cashier’s check is regarded as a more secure type of check compared to a certified check. 

Listed below are the three differences between certified checks and cashier’s checks.

  • Cashier’s check funds are directly from the bank: A cashier’s check is issued after the check has been paid. The amount that has been printed on the check is guaranteed from the back itself. The funds are not from the account holder’s account or business account; it is straight from the bank. 
  • Accomplished by printed and handwritten form: A certified check is produced personally by the account holder using their handwriting, while a cashier’s check is printed by the teller of the bank.
  • In case of loss: A cashier’s check can be tricky in case the recipient loses the check. It is often challenging since the bank might require the recipient to wait up to 90 days to get a replacement check. 

What are the similarities between Certified Checks and Cashier’s Checks?

A cashier’s check and a certified check both offer a guarantee to the recipient of the payment. It has an assurance that it has money to cover the amount that has been printed. Both checks are safe to use for numerous transactions, especially, when the transaction is from a stranger. A cashier’s check and a certified check come with a fee. Sometimes, banks waive the fee if the customer is a holder of a savings or current account. The bank requires a certain amount of balance to waive the fee. 

List below are the three similarities between certified checks and cashier’s checks.

  • A cashier’s check and a certified check both require a service fee from the bank. 
  • A cashier’s check and a certified check both offer guaranteed cash for the recipient.
  • A cashier’s check and a certified check are both used for handling large transactions. 

Is a cashier’s check a certified check?

No, a cashier’s check and a certified check are different to each other. They are both an alternative to cash payment, but they are different. A cashier’s check is more complicated to acquire, but offers a huge difference when it comes to security compared to a certified check. Another advantage of a cashier’s check when it comes to security is that it has a unique watermark that makes it difficult to fake. A certified check is personally handwritten by the account holder, while the cashier’s check is printed by the teller of the bank.

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